Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2842, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Director of Transportation to extend revocable permits for concessionaires at state airports for up to one year if the extension is necessary due to a natural disaster or an adverse economic condition.

Your Committee finds that since the September 11, 2001, terrorist attacks, the State has been in an economic downturn. Air travel has declined significantly, and consequently, airport concessionaires have been devastated. As a result, it has proven difficult to obtain responsive bidders for airport concessions.

Your Committee finds that it is appropriate and necessary under these circumstances to authorize extensions of revocable permits for concessions, so that the concessions can remain open to serve visitors and other passengers at the airport.

Upon further consideration, your Committee has amended this measure by:

1. Deleting the contents of the bill;
2. Amending Act 15, Third Special Session Laws of Hawaii 2001, relating to the Governor's emergency powers, by extending the sunset date to an unspecified date to allow for further discussions on this subject. Act 15, among other things, allows the Governor to suspend, waive, or defer any contract obligations, including contracts relating to airport concessions, owed to the State up to April 30, 2002, on such terms and conditions as are necessary to minimize losses attributable to the economic emergency; and
3. Amending the effective date section to render it defective in order to facilitate further discussion on this measure.

Your Committee finds that while this measure is a good first step, additional discussion is necessary on these issues. Accordingly, your Committee is passing this measure out as a vehicle to continue discussions so that the parties can reach a consensus on all of the issues.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2842, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2842, S.D. 2.